COURTESY MODERATOR ANALYSIS OF BUSINESS ...ijim.ump.edu.my/images/IJIM-3/IJIM3-3.pdfthe business...

International Journal of Industrial Management (IJIM)

ISSN (Print): 2289-9286; e-ISSN: 0127-564x; Volume 3, June 2017

© Universiti Malaysia Pahang, Malaysia

COURTESY MODERATOR ANALYSIS OF BUSINESS SERVICE ETIQUETTE AND

CUSTOMER SATISFACTION IN HOTELIERS’ SERVICE INTENTION

Pang Kim Kwong

Manipal International University (MIU)

No 1, Persiaran MIU, 71800, Nilai, Negeri Sembilan Darul Khusus, Malaysia;

E-mail : [email protected]

Vadiraj Jagannathrao


No 1, Persiaran MIU, 71800, Nilai, Negeri Sembilan Darul Khusus, Malaysia

E-mail ; [email protected]

Shuhaimi Haji Mohd Sauh


No 1, Persiaran MIU, 71800, Nilai, Negeri Sembilan Darul Khusus, Malaysia

E-mail; [email protected]

Gomathi Shanmuganathan

School of Graduate Study. Asia e University

Kuala Lumpur, Malaysia

E-mail; [email protected]

ABSTRACT

The purpose of this paper was to improve understanding of the relationships between the

business service etiquette, service provider courtesy attitude, and customer satisfaction.

Specifically, courtesy attitude was evaluated as a potential moderator of the relationship between

the business service etiquette and customer satisfactions. A self-generated survey questionnaire

data collection approach was utilized. This study investigated the relation between business

etiquette and customer satisfaction of hoteliers‘ service intention as moderated by courtesy

attitude. Subjects were 376 tourists visiting Kuala Lumpur. Hypotheses were tested using an

SPSS SEM path diagram. This research extended service theory by examining the relationship

between service providers and tourists (customers) in an actual hotel retailing setting. Important

theoretical contributions were included, demonstrating that service provider courtesy moderates

the relationship between business service etiquette and customer satisfaction perceptions of

behavioural intention. Findings have shown that positive courtesy attitude changes in business

service etiquette characteristics can amplify positive customer satisfaction.

Key Words: business service etiquette, customer satisfaction, courtesy attitude, hotel service

providers, tourists.

mailto:[email protected]







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INTRODUCTION

Moderation states to a study that three or more variable factors, such as the occurrence of one of

those variable changes the relationship between the other two. As such, moderation happens

when the connection between two variables is not similar at all levels of a third variable. The

relationship between two variables depends on the value of the moderator. The moderator either

strengthens or weakens the relationship between the predictor and outcome. ―It becomes the

intensity up and depressed‖.

Findings suggest that service provider evaluations of the business service etiquette improve in

the mien of an appropriate ambient scent. Behavioural responses are also enhanced: providers are

seen as more courteous and customers more satisfied (Fowler and Bridges, 2012). Possibly the

most interesting observation is that provider courtesy, attitude moderates the relationship

between the business service etiquette and customer satisfaction perceptions of hoteliers‘ service

provider behavioural intention.

Results indicate that when the affective nature of the business etiquette and customer satisfaction

relationship is positive (e.g., business service etiquette is high or intensity of customer

dissatisfaction conflict is low), positive courtesy, attitude adjustment is more likely when the

customers (tourists) report less emotional autonomy (Kalshoven, Den Hartog, and De Hoogh,

2013).

LITERATURE REVIEW

There are tremendous theories and principles justifying the influencing force of business service

quality, (Parasuraman, Zeithaml, and Malhotra, 2005); total quality management, (Hoyle, 2007);

and customer relationship marketing (Shaw, 1991) upon service providers. It is about customer

relationship management which is a business's long-term instruction method, software and

internet capabilities to assist companies handle customer relationships in an organized manner

(Oliver, 1997). These are the basic cause-effect of business etiquette - customer satisfaction (Nga,

and Shamuganathan, 2009; Pang, 2013; Pang & Shamuganathan, 2015; Pang, 2015; Pang, Pang

and Shamuganathan, 2016).

The researcher in this empirical work attempts to improve the understanding of the relationships

between the business service etiquette, service provider courtesy attitude, and customer

satisfaction. Specifically, courtesy attitude is evaluated as a potential moderator of the

relationship between the business service etiquette and customer satisfactions.

Moderation states to a situation that causes three or more variable factors, such as the occurrence

of one of those variable changes the relationship between the other two. In a causal relationship,

if x is the predictor variable and y is an outcome variable, then z is the moderator variable that

affects the casual relationship of x and y. Aquino, Galperin, and Bennett (2004), have suggested

that a moderating variable is a third variable that affects the strength of the relationship between

the independent and dependent variable in data analysis. The moderator variable if found to be




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significant can cause an amplifying or weakening effect between x and y. Flower and Bridges

(2012) in their study found that service provider evaluations of the business service etiquette

improve in the presence of an appropriate ambient scent. Behavioural responses are also

enhanced: providers are viewed as more courteous and customers more satisfied. Perhaps the

most interesting observation is that provider courtesy attitude moderates the relationship between

the business service etiquette and customer satisfaction perceptions of hoteliers‘ service provider

behavioural intention.

A research survey conducted by Kalshoven et al. (Kalshoven, Den Hartog, and De Hoogh, 2013)

indicate that when the affective nature of the business etiquette and customer satisfaction

relationship is positive (e.g., business service etiquette is high or intensity of customer

dissatisfaction conflict is low), positive courtesy attitude adjustment is more likely when the

customers (tourists) report less emotional autonomy.

Figure 1 shows the conceptual explanation, the moderating variable (courtesy) in a schematic

diagram of an effectiveness effect of exogenous variables (business etiquette) interacting the

endogenous variable (customer satisfaction). Hence,

Null hypothesis, Ho: Courtesy attitude has no significance moderating effect for business

etiquette and customer satisfaction.

Alternative hypothesis, H1: Courtesy attitude has significance moderating effect for business

etiquette and customer satisfaction

Fig.1: The moderating variable (Courtesy), exogenous variable (business etiquette) interacting the endogenous

variable (customer satisfaction).

Gotlieb et al. (Gotlieb, Levy, Grewal, and Lindsey-Mullikin, 2004) in their work design and test

a model suggesting that hoteliers‘ courtesy affects a tourist (customer) satisfaction. The hoteliers‘

employee courtesy, attitude, the business service etiquette, and client satisfaction are three

important elements of patronage, experience that might affect satisfaction perception toward a

hotel inspection and repair provider. The paper describes results of two experiments that found




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there was an interaction effect between employee courtesy and the physical environment on

attitude toward the service firm. That is, the effect of hoteliers‘ employee courtesy on attitudes is

more positive when the environment is evaluated favourably than when it is evaluated

unfavourably. Still, there were no interaction effects of locus of causality and courtesy on

attitude toward the service firm. In the second survey, there was a main issue of locus of

causality on attitude toward the house in that experiment. That is, participants with an inner locus

of causality had a more favourable attitude toward the service firm than did participants with an

external locus of causality.

Robinson and Callan (2002) in their work conclude that hotel services which require high levels

of service etiquette labour that is more complex than in other industries. Granting to the author,

the ability of self-emotional courtesy appraisal and other's satisfaction, emotional appraisal

become the important factors for in-role cooperative service behaviour and extra-role service

behaviour. The practices can regard emotion management as the hint to predict applicant's

business service etiquette behaviour, and consider it as a tool to select staff with good service

performance.

In another interesting argument noted from Crane and Clarke (2006), that marketing managers

take on the feeling that there are more or less controllable and uncontrollable variables in the

surroundings that will impact on the consumer's perceptions of their product offering. If vendors

can see which criteria are used to evaluate a product, in this case a service provider, and can

identify which cues are utilized to assess the criteria, they will be better capable to oversee and

influence the consumers' evaluations and perceptions of the oblation. The cue may be considered

courtesy attitude to moderate the business service etiquette in achieving customer satisfaction

ultimately.

Liang (2012) has identified that both work values and burnout are important predictors for

promoting organizational citizenship behaviors. It was found that both work values and burnout

are important elements to consider for promoting client satisfaction. In summation, the study also

shows that burnout as a moderator can decrease the predictions of the relationship between

service values and satisfaction.

In another study, Chen (2009) found that personality traits of courtesy moderate the relationship

between perceived etiquette and satisfaction. Ladhari‘s (2009) research work supported the

conceptual model of the relationships among the constructs of ―service quality‖, ―emotional

satisfaction‖, and ―behavioural intention‖ in the hospitality industry. The results affirm that

service quality exerts both direct and collateral effects (through emotional satisfaction) on

behavioural intentions. The research work concluded that future research should concentrate on

the role of client satisfaction in service experience in a diversity of contexts.

Though at that place is a nice amount of studies on customer satisfaction in the hotel industry, in

that respect is limited literature available on the relationships between the business service

etiquette, service provider courtesy attitude, and customer satisfaction. Through this study, the

researcher is trying to better the understanding about the same.




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Hoteliers‘ courtesy attitude is acknowledged as an important measurement of customer

satisfaction. This report presents and tests a model, suggesting that hoteliers‘ courtesy affects a

tourist (customer) satisfaction. The hoteliers‘ employee courtesy, attitude, the business service

etiquette, and client satisfaction are three important elements of patronage, experience that might

affect satisfaction perception toward a hotel inspection and repair provider. The paper describes

results of two experiments that found there was an interaction effect between employee courtesy

and the physical environment on attitude toward the service firm. That is, the effect of hoteliers‘

employee courtesy on attitudes is more positive when the environment is evaluated favourably

than when it is evaluated unfavourably. Still, there were no interaction effects of locus of

causality and courtesy on attitude toward the service firm. In the second survey, there was a main

issue of locus of causality on attitude toward the house in that experiment. That is, participants

with an inner locus of causality had a more favourable attitude toward the service firm than did

participants with an external locus of causality (Gotlieb, Levy, Grewal, and Lindsey-Mullikin,

2004).

UNDERLYING THEORY

The Theory of Planned Behavior (TPB) (Ajzen, 1988, 1991, 2002) recommends an example

about how human action is piloted. It foretells the event of a defined behaviour stipulated that the

conduct is knowing. The model is depicted in Figure 2 and symbolizes the three variables which

the theory recommends will foresee the intention to accomplish a behaviour. Intentions are the

antecedents of behaviour. The varying terms in TPB model reflect emotional paradigms and then

they bear a distinct significance in the hypothesis. Here are some concise descriptions of these

unique denotations.

Fig. 2: Underlying Theoretical Framework—Theory of Planned Behaviour

METHODOLOGY

Participants

This study used random sampling method towards the Kuala Lumpur tourist population in

January 2016. The sample consists of 376 respondents of tourists from all over the globe.

Process and Instrument




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Moderator models are often used to observe when an independent variable (IV) impacts a

dependent (DV) variable. That is, moderated mock-ups are used to distinguish elements that

change the relationship between predictor (IV) and outcome (DV). To attest, we wanted to find

out whether or not the impact of business service etiquette and customer satisfaction depends on

courtesy attitude of the avail supplier. That is, only individuals who have courtesy intention can

achieve the positive interaction between business service etiquette and customer satisfaction. Part

H6 shown in number 3 in the underlying conceptual framework below has depicted the

moderator position. The underlying theory in figure 2 derived from Ajzen, (1985), analyzing

instrument was adapted from Moss (2016); Aiken, & West, (1991); Ryan and Bonfield (1980);

Hill, (1977); Hyman, (1955) and Wright, (1934).

Fig. 3: The moderating variable (courtesy in a schematic diagram of an effectiveness effect of exogenous

variable (business etiquette) interacting the endogenous variable (customer satisfaction).

DATA ANALYSIS

To answer this query, we need to decide whether or not the outcome of business service etiquette

(btq) and courtesy (CTs) on customer satisfaction (csn) depends on courtesy attitude. In other

language, we require to see whether or not cats moderates or interacts with btq and can achieve

competitive advantage of the system. Of course, we could develop and clean our raw data. Alas,

this categorization clearly restricts power, because indirect variables in our data are omitted.

Rather, we should expose this event inside the context of regression. That is, we should

comprehend a variety of regression called moderated regression analysis (Masood et al. 2009,

Winsted, 2006; Yoder, et al. 2002).

Step 1: Create the Product Terms

To examine interactions within the context of moderated regression, we created additional

columns in our database using ‗transform‘ function in the SPSS program. The first column will

equal: (btq - mean of btq) x (cts - mean of cts).

The second column will equal: (csn - mean of csn) x (cts - mean of cts).




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Hence, these columns basically equal the product of each condition, after the variables have been

addressed, a concept that will be cleared up later. The first product term in reality represents the

interaction between btq and cats. The second product term actually represents the interaction

between stone and cuts.

To produce these product terms, the mean of the three predictors was determined following the

stairs beneath.

1. From the "Analyse Data" menu select "Descriptives" and then click "Descriptives".

2. Transfer the labels that pertain to btq, ctn , and cts into the box labelled "Variables".

Press "OK" to generate a table of means.

3. Select "Compute" from the "Transform" menu.

4. In the box labelled "Target variable", enter a name to represent the new column or

product term, such as "mnr_x_cts, csn_x_cts".

5. In the box labelled "Numerical Expression", specify the appropriate formula, such as

(mnravg - 5.551) * (ctsavg - 4.70) and (csnavg – 4.93)* (ctsavg -4.70).The respective

mean scores are derived from table 1.1 below.

Table 1: Descriptive Statistics of Mean Score

N Minimum Maximum Mean Std. Deviation

Mnravg 376 1.00 7.00 5.5505 1.29732

Csnavg 376 1.00 7.00 4.9257 1.77551

ctsavg 376 1.00 7.00 4.7000 1.72205

Valid N

(listwise)

376

In this study, 5.551 is the hypothetical mean score of manners (mnr) and 4.70 is the hypothetical

mean score of courtesy (cts). This process was repeated to create the product term that represents

the interaction between customer satisfaction (csn) and courtesy (cts).

Step 2: Undertake Regression Analysis




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Table 2: Coefficientsa

Model Unstandardized

Coefficients

Standardized

oefficients

t Sig.

B Std. Error Beta

(Constant) 20.235 2.539 7.970 .000

Mnravg 4.903 .456 .539 10.749 .000

Csnavg 1.603 .893 .241 1.795 .073

Ctsavg -.597 .843 -.087 -.708 .479

mnr_x_cts -.375 .251 -.078 -1.495 .136

csn_x_cts .162 .184 .052 .880 .049

Independent Variable : btqscr

The following footfall is to complete the regression analysis. That is: Select "Regression" and

then "Linear" from the "Analyse Data" menu. Designate business service etiquette (btqscr) as the

dependent variable. Designate the product terms, as well as all the variables that were utilized to

create these interactions, as the independent variables. An excerpt of the output is shown in table

1.2 above.

Step 3: Interpretation of Significance

To construe this output, we examined the column categorized "sig", which denotes the

significance or p values that affect to each independent variable. In this illustration, the p value

that moves to the mnr_x_cts (0.136) term surpasses 0.05 and therefore does not comprehend the

meaning. Therefore, the researcher would see that no indication occurs that courtesy moderates

or influences the influence of practicing manners on service. On the other hand: The p value that

pertains to csn_x_cts (0.049) is less than 0.05 and thus achieved significance. Hence, courtesy

moderates the effect of practicing customer satisfaction on business service etiquette.

The other standings, called main effects, can also be taken. Exactly, the p value accompanying

with customer satisfaction is less than 0.05 and is hence significant. This result suggests that

achieving customer satisfaction reduces etiquette intervention. Though, as we discovered

previously, courtesy moderates this effect. In specific, this main effect applies when courtesy is

average. In other words, customer satisfaction decreases business service etiquette when courtesy

is average. The impact of customer satisfaction on business service etiquette at other levels of

courtesy will be explored below.




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Step 4: Interpretation of Direction

To reiterate, the issue of customer satisfaction on business service etiquette is influenced by the

courtesy attitude of hoteliers. The nature of this connection, however, has not been found. For

example: Customer satisfaction may lessen business service etiquette to a larger extent when

courtesy is raised.

Fig. 4: Moderated Regression between CSN and BTQ

On the other hand, customer satisfaction may reduce business service etiquette to a greater extent

when courtesy is reduced. Various processes can be conducted to describe these alternatives.

Possibly the most informative procedure involves making a graph. An example is shown in

Figure 4.

To produce this graph, the researcher should express equations that embody the relationship

between customer relationship and business service etiquette at various points of courtesy

attitude. The standardized Beta values, which came along in the third column of the yield (Table

2), are utilized to create these equations. Explicitly, to generate these equations, we have

managed the following:

First apply the standardized Beta values to represent the dependent variable-- business service

etiquette --as a part of all the other variables. In particular, each standardized Beta value

represents the coefficient of each term in this equality.

Standardized values of btq = 0.241 x csn - 0.087 x cts + 0.052 x csn__x_cts (1)

It has to estimate the dependent variable when both the independent variable and moderator are

greater than average. In this instance, we could estimate btq when both cns and cts equal 1.

Customer Satisfaction = -1 Customer Satisfaction =1

Courtesy= - 1 -0.102 -0.38

Courtesy=1 0.276 0.206

-0.102

-0.38

0.276 0.206

-0.6-0.4-0.2

00.20.4

STA

ND

AR

IZED

BTQ

STANDARDZED CSN

MODERATING EFFECT OF COURTESY

Courtesy= - 1 Courtesy=1




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Recall that all variables have been converted to z scores, and thus a value of 1 exceeds the

average. When csn and cts are converted to 1, Equation 1 becomes:

Standardized values of btq = 0.241 x 1 - 0.087 x 1 + 0.052 x 1 x 1 = 0.206 (2)

Repeat this process, except estimate the dependent variable when:

The independent variable equals -1 and the moderator equals 1

The moderator equals 1 and the independent variable equals -1

Both the independent variable and the moderator equals -1

For example, when csn is -1 and cts is 1, Equation (1) becomes:

Standardized values of btq = 0.241 x -1 - 0.087 x 1 + 0.052 x -1 x 1 = -0.38

Likewise, when csn is 1 and cts is -1, Equation (1) becomes:

Standardised values of btq = 0.241 x 1 - 0.87 x -1 + 0.052 x 1 x -1 = 0.276

Furthermore, when csn is -1 and cts is -1, Equation (1) becomes:

Standardized values of btq = 0.241 x -1 - 0.87 x -1 + 0.052 x -1 x -1 = -0.102

Illustration of the Format Used to Report Moderated Regression.

Multiple regression analysis was taken to determine whether or not the relationship between

practicing manners or customer satisfaction and business service etiquette depends on courtesy

attitude. To interpret the interaction between these predictors, the variables were first introduced

and then bred together. This analysis uncovered the essence of Customer Satisfaction, but not

Manners, on business service etiquette depends on practicing courtesy. The standardised B and t

values that came out from this analysis are shown in Table 3.

RESULTS

Figure 4 presents the relationship between CSN and BTQ at high (z=1) and low (z=-1) levels of

courtesy attitude. These equations were derived from the standardized B values (Table 3).

According to this figure, when courtesy attitude is limited, CSN is inversely related to BTQ. This

relationship, however, diminishes as courtesy attitude increases.

Table 3: Standardized B

Model Beta t

(Constant) 8.0***

Manners .54 10.75

Customer Satisfaction .24 1.80




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Courtesy -.09 -0.71*

Manners x Courtesy -.08 -1.50*

Customer Satisfaction x

Courtesy

.05 0.88

* p < 0.05, ** p < 0.01, *** p < 0.001

DISCUSSION

A moderator is a variable that defines conditions under which a given predictor is related to an

issue. A moderation effect could be (a) Enhancing, where increasing the moderator would

increase the force of the predictor (IV) on the outcome (DV); (b) Buffering, where increasing the

moderator would decrease the force of the predictor on the issue; or (c) Antagonistic, where

increasing the moderator would reverse the outcome of the predictor on the issue.

In this instance, null hypothesis; Ho: Business etiquette has no moderating effect on the

relationship between business etiquette and customer satisfaction. Thus, we were failing to

accept. Nevertheless, we accepted hypothesis H1: Courtesy attitude has a positive moderating

effect on business etiquette towards customer satisfaction.

CONCLUSION

According to Baron and Kenny (1986), and Judd and Kenny (1981), the scholarship of the

moderation and mediation effect has come through a long account. Mediation is a very popular

subject. Mediation and moderation analyses are a central component of what has been called

progression analysis, but mediation influence is likely to be more prevailing than moderation

analyses. It is proposed that, in the test of multivariate analysis, the moderation fragment of the

model is habitually the most remarkable portion of that exemplar.

It is recommended that successful hoteliers are risk takers and opportunity seekers. The

restriction of the work was, the opinions were from the sample of tourists. Moreover, the

researcher may spawn opinions, not merely from the customers, but likewise from the

entrepreneurs. The characteristics of business etiquette services are proposed to link and chain

together. We proposed that the service business etiquette, service quality, TQM, quanxi and

intelligence quotient are inter-correlated and should be studied in the form of series circle, as

―business etiquette service-chain‖.

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http://www.tandfonline.com/doi/abs/10.1080/02642060903026262

http://www.tandfonline.com/doi/abs/10.1080/02642060903026262

COURTESY MODERATOR ANALYSIS OF BUSINESS ...ijim.ump.edu.my/images/IJIM-3/IJIM3-3.pdfthe business...

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